NEW DELHI/ISLAMABAD: Pakistan appeared to be teetering on the brink of yet another bout of political instability as the Supreme Court asked an anti-graft watchdog to arrest prime minister Raja Pervez Ashraf in a bribery case.

The order came even as thousands of anti-government protestors led by an influential cleric staged demonstrations in Islamabad. The coincidence set off speculation that a larger design to hoist a temporary government backed by the military was at work, ahead of general elections due before March.

The court ordered the arrest of the prime minister and 15 senior serving and former officials in a case that involves allegations that Ashraf took millions of dollars in kickbacks as minister of water and power in 2008-2011, in a deal to build two power plants.

The issue has particular political resonance at a time when Pakistan is suffering from a severe power crisis, and ordinary Pakistanis protesting against the government in Islamabad cite the grim power situation and pervasive corruption as a key reason why they want the government to go.

In June 2012, the Supreme Court had disqualified then prime minister Yousuf Raza Gilani from holding office. Dr Tahir Ul Qadri, a politician and a cleric who returned to Pakistan last year after a seven-year stay in Canada, has galvanised supporters with his anti-government stance and fiery and emotional oratory peppered with Islamic references.

"The military can intervene at this moment as the Supreme Court has opened a way for it." The political churn in Islamabad will likely make the tough bilateral diplomatic climate even tougher to negotiate. If the stability of the civilian government is threatened, the diplomatic responses to India's demands might come to be dictated by more aggressive elements of the Pakistani state.

"Pakistan's current political turmoil is reflective of the military, judiciary and civilian leadership positioning themselves for greater influence towards the next general elections. India needs to keep active its strategic agenda of bolstering people-to-people, trade and confidence building measures with Pakistan during the next few difficult months, while maintaining a robust defensive position along the LoC."

Foreign minister Salman Khurshid said: "It should not be felt that the brazen denial and the lack of a proper response from the government of Pakistan to our repeated demarches on this incident will be ignored and that bilateral relations could be unaffected or that there will be business as usual."